International Airlines Group (IAG) has agreed with Velocys, a sustainable fuels company, to purchase some 220,000 tons of sustainable aviation fuel (SAF) over the next ten years.
IAG’s purchased SAF will initially be used by British Airways, Iberia, and Aer Lingus, representing a third of Velocys’ planned production under the Bayou Fuels project that the company is developing in the United States with the aim of starting distribution in 2026.
The U.S. company produces sustainable fuels from household, commercial, and forestry waste for both airline operations and heavy transport. They even claim that they can manufacture fuels with net negative greenhouse gas emissions when they use carbon capture and storage. This process involves splitting the carbon atom from CO2 to deposit it in a geological storage site isolated from the atmosphere.
As reported by IAG, it is the first airline group in Europe to make a commitment to operate 10% of its flights with sustainable aviation fuel by 2030, which would reduce CO2 emissions by two million tons per year.
Luis Gallego, CEO of IAG, said, «IAG is currently investing $400 million in the development of sustainable aviation fuel over the next 20 years. The new agreement is another important step towards achieving our goal of operating 10% of our flights with sustainable aviation fuel by 2030».
Moreover, in recent days, the group carried out the first commercial flights of Iberia and Vueling airlines using SAF produced in Spain by Repsol.
For his part, Henrik Wareborn, CEO of Velocys, said that with this agreement, the company is «taking another step forward in the long-term collaboration with IAG. Velocys offers its customers end-to-end technology solutions allowing the production of sustainable aviation fuels from waste and the integration of carbon capture technology. We are delighted to join IAG on its journey to achieve net-zero CO2 emissions by 2050».
In the statement issued by IAG, the holding company called upon the UK government and the European Union to adopt policies that boost biofuel production, building on the support Velocys has had in the U.S. from the White House. «Sustainable aviation fuel is a key element in the decarbonization of the airline industry. Public sector support is required to attract investment so that the necessary plants to secure supply for the aviation industry can be built», they said.
